EMBRACING

DISRUPTION

http://www.recgroup.com

Aw, Jian Huei - IT Director

jian.huei.aw@recgroup.com

8th Nov, 2016

REC’s approach to

Digital Transformation

Agenda

1

2

3

Intro to REC Group

REC’s Approach to

Digital Transformation

Q&A

5GW generated

20mio panels

produced

8mio people powered

By REC

HQ In Norway

REC Group [http://www.recgroup.com]

Who we are …

Celebrating its 20th anniversary in 2016.

Founded in 1996, REC is a Bluestar Elkem company with headquarters in Norway and operational headquarters in Singapore.

REC is a leading European brand of solar panels striving to help meet the world’s growing energy needs in an environmentally sustainable manner.

REC is one of the few fully integrated Photovoltaic (PV) manufacturers in the world, producing from polysilicon, to wafers, to cells, to panels and to turnkey solar solutions.

REC concluded 2015 with 2,000 employees worldwide, 1.3 GW solar panel production capacity, and annual revenues of USD 755 million. REC’s total global numbers as of end-2015

REC Group [http://www.recgroup.com]

2010

2013

2015

1996 REC established in Norway

1997 First wafer washed by hand in summer 1997

1997

to

2009

Production of wafers, solar cells and solar panels

In Scandinavia (Norway and Sweden)

Fully automated and integrated production of

wafers, cells, and panels begins at state-of-the-art factory

in Singapore

Split of REC from Renewable Energy Corporation ASA

(REC Silicon)

REC acquired by Norway’s Elkem Group

(Bluestar investment Co. Ltd.)

REC Tuas Singapore

REC Tuas Plant Opening

Power Plant Installation

Home Rooftop Installation

Business Facility Installation

Singapore StanChart Bank

Singapore Sport Hub

Singapore Bugis Junction

Singapore Tiger Brewery

How REC solar panels are made Please visit https://www.youtube.com/watch?v=1BH_CY0nuEs

Photovoltaic (PV) Value Chain

Polysilicon

produced from

quartzite sand

Melted polysilicon

casted into ingots

and sliced into wafer

Wafer

fabricated into

solar cells

Solar cells

assembled into

solar module

Solar modules

installed into

PV system

Polysilicon Wafer Solar

Cells

Solar

Module

PV

System

Roles of IT at REC

IT

Value Chain Customers

IT supports the value chain

IT

IT

IT is part of the value chain

Value Chain Customers

IT

IT

Value Chain Customers

IT

IT delivers the product/service

IT

IT

IT

Value Chain Customers

IT is part of the product/service

HOD

Buy-in Level Required

BU CEO BOD

IT as

Business

IT as

Business

Support

IT as

Business

Enabler

IT as

Business

Strategy

REC 5-Years IT Roadmap (2013-2017)

2013/14 2014/15 2015/16 2016/17

Separation from

REC Silicon &

Localization of

IT Infra & Ops

Upgrading of

MS Office /

Messaging

& DMS / WFA

Platform

Enhancement

of Core Business

/ Production

Applications

ERP

Upgrade

Replacement of

Legacy ERP

System with

SAP ECC6

Infrastructure

Re-Alignment Productivity

Improvement

Applications

Enhancement

REC Digital Initiatives (run in parallel with IT Roadmap)

Year 0-1 Year 1-2 Year 2-3 Year 3-4

REC Digital Initiative: Approach

Create Distinctive Competencies

that drive Business Outcomes

Transform or Invent new

Business/Operation Strategies/Models

using Disruptive Capabilities

Enable Infrastructure to

create Disruptive Capabilities

Select Appropriate Disruptive

Technologies as Drivers

Emergent

Strategy

Approach

“An approach that is

bottom-up, agile,

iterative and adaptive.”

(i.e., Learn, re-align resources,

revise SOPs & change mindset

along the journey)

Agile, Iterative

& adaptive

Agile, Iterative

& adaptive

Select Appropriate Disruptive

Technologies as Drivers McKinsey Global Institute: 12 Disruptive Technologies (Source: http://www.mckinsey.com/)

Disruptive Technologies Capabilities Objectives

1. Advanced Materials

2. Renewable Energy

3. Energy Storage

4. 3D Printing

• Leapfrog in cells/panel efficiency

• Leapfrog in storage capacity/lifespan

• Leapfrog in NPI cycle time reduction

5. Advanced Robotics

6. Automation of Knowledge Work

7. Full/Near Autonomous Vehicles

• Drastic reduction in SC/VC cycle time

• High predictability of production output

8. Mobile Internet

9. Cloud Technologies

10.Internet of Things

11.Advancement in O&G Exploration/Discovery

12.Next-Gen Genomics Irrelevant at the moment

R&D

IT

OPS

1. Exceptional productivity gains

2. Enhanced R&D / Ops capabilities

3. New business strategy

4. New business model

A. Pervasive Collaboration

B. Big Data Insight / Foresight

C. Connected Intelligent

Environment

R&D capabilities

that will lead to …

Ops capabilities

that will lead to …

S/N Disruptive

Capabilities

Key Components

Required

Key Infrastructure

to be Enabled

A. Pervasive

Collaboration

a) Any devices

b) Cloud-based computing

c) Mobile apps

• Mobile Workplace

• Hybrid Cloud Computing

• Flexible Network

• Robust Connectivity

B. Big Data Insight /

Foresight

a) Big data capturing

b) Cloud-based computing

c) Real-time analytics

C. Connected

Intelligent

Environment

a) Sensory / Signal conditioning

b) Fog / Cloud-based computing

c) Artificial Intelligent / Machine

Learning support

Enable Infrastructure to create

Disruptive Capabilities

Year 1-2

ERP

Upgrade

Year 0-1

Infrastructure

Re-Alignment

Year 3-4

Productivity

Improvement

Year 2-3

Applications

Enhancement

• BYOD Policy / MDM

• Tablet PCs / Window 10

• Microsoft® Office 365

• Office 365 SharePoint

• Workflow Automation

• Budgeting, Planning & Consol

• Sales & Ops Planning

• Sales force Automation

• Warranty Claim Processing

• Module Mfg. Data Achieving

Virtualized DC,

secured network and

enhance connectivity

to prepare for digital

transformation

Deploy ERP in

managed cloud to

enable inter-cloud and

inter-DC operability

Embrace cloud-based

apps to facilitate

setting up of hydride

cloud environment

Introduce mobility

into workplace to

support pervasive

collaboration

• Re-build DC Backend Infra

• Convert physical to virtual

• Migrate global gateway to Asia

• Improve network robustness

• Implement network access control

• Implement new ERP system

• Enhance MES Integration

• Implement Process Integrator

• Re-build interfaces to ERP

• Isolate ERP from MES

REC IT/IS Roadmap (2013 – 2017)

Quick Win

Secure Business

Buy-in

Identify Use Case

Show Business

Value

Rollout Solution

REC Digital Initiative: Framework

Least

Challenging

Tech

no

log

ies a

s E

nab

lers

Dis

rup

tive

Ca

pa

bil

itie

s a

s D

rive

rs

REC IT Vision – IT as a Strategic Asset 1. Well Governed 2. Cost Effective 3. Business Focused 4. Streamlined Processes 5. Secured & Sustainable

A. Pervasive

Collaboration (via Mobile

Applications)

B. Big Data

Insight /

Foresight

(via Real-time

Analytics)

C. Connected

Intelligent

Environment (via AI/MI

Support)

IT as Support IT as Enabler IT as Strategy IT as Business

1. Workforce 2. R&D / Ops 3. Customer Service

Selected Transformation Domains

4. Turnkey Solution

Most

Challenging

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reprint, in whole or in part, is strictly prohibited. The information in this presentation may not be accurate, complete or up to date, and is provided without warranties or representations of any

kind, either express or implied. REC, as well as its directors, officers and employees, shall not be responsible for and disclaims any liability for any loss or damages, including without limitation,

direct, indirect, incidental, consequential and special damages, alleged to have been caused by or in connection with using and/or relying on the information contained in this presentation.

Thank You Q&A